Bid and Ask, do I pay 2x spreads for each trade? - Page 2
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Thread: Bid and Ask, do I pay 2x spreads for each trade?

  1. #11
    To make it simpler to understand:
    you will always buy (open long trade) at higher price(ask) and market ( close long trade) in a lower price(bid).
    You only pay the spread after. When launching the order.

  2. #12
    Exactly what a buyer is willing to cover - bid always less (10)
    Exactly what a vendor is asking - ask always more (11) in this situation spread is 1,

    We as traders enter the market on the opposite side so to buy we're finding a vendor ASK price, and to sell we find buyer BID price

    It doesn´t really matter what the spread is if you observe the right prices

    So at 1 long position is open BUY - ASK - 1.2500
    in 10 long is shut SELL - BID - 1.3000

    So basically yes you cover twice spread, also depends the way the machine is showing off the prices, if only bid is revealed, when launching position you cover disperse and if closure no, I am not actually certain how your broker indies this info but if you obey the bid and ask prices as I said before you get the result.
    Anyway some brokers show always both prices even when you put in SL and TP, such as SL in 1,100 BID, therefore this missunderstanding is prevented, plus it calms the decision making, but it can be learned through training.

    Its very easy to get this mixed up, I hope I got it right


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